The widespread belief that economic growth will solve poverty is wrong and dangerous, says a rapporteur

The UN Special Rapporteur on extreme poverty and human rights, Olivier De Schutter, calls for a reflection on the fight against global poverty and says that governments must end the dangerous fixation on the growth of the Gross Domestic Product (GDP) as a way to eradicate it, since it is wrong and leads the world down a dangerous path.

“For decades we have followed the same old recipe: first grow the economy and then use the wealth to fight poverty. This has served up an unpalatable dish: a world on the brink of climate collapse in which a small elite possesses outrageous wealth while hundreds of millions of people wake up every day to the horrors of extreme poverty,” said De Schutter when presenting his annual report to the Human Rights Council from the ONU.

In the paper, De Schutter documents the environmental destruction and extreme inequality caused by dominant political and economic thinking.

An economy based on human rights

The rapporteur urges governments and international organizations to alter courseabandoning the use of gross domestic product (GDP) as a measure of progress and prioritizing instead human rights and well-being in their economic decisions.

“Our fixation with the growth “It is short-sighted and is only making the rich richer while devastating the systems that sustain life in the world,” De Schutter said.

“GDP and our addiction to consumerism have become dangerous distractions “What is really important is the ability of people to lead a dignified life on a habitable planet. That means ensuring a set of fundamental rights for all, including access to social services and the right to a clean, healthy and sustainable environment,” he added.

De Schutter’s report exposes how economic growth in the Global South has failed to lift millions of people out of poverty. In a world shaped by colonialism, wealth creation in low-income countries relies heavily on the exploitation of cheap labour and the extraction of natural resources, often to produce goods for the Global North and to service foreign debt.

“Even in low-income countries, where growth remains necessary and must be supported, development should not be equated with an increase in GDP, but with greater social and ecological well-being,” the Special Rapporteur said.

Public services and social protection

The report calls for an urgent rethinking of the fight against poverty, advocating a rapid shift towards an economy that directs resources towards public services and social protection.

Calls for debt restructuring and forgiveness and funding of universal public services through progressive taxation on inheritance, wealth and carbon, as well as greater international cooperation against tax evasion.

“Our blind faith in economic growth is a straitjacket on our imagination, and the fight against poverty has suffered greatly as a result,” De Schutter said.

“However, there are concrete steps that can be taken now that will get us back on track. Rejecting GDP as an indicator of progress, guaranteeing government-supported jobs, placing greater value on unpaid domestic and care work, establishing minimum wages, putting a cap on the wealth generated by destructive industries – these are the policies that can truly benefit the planet and its people,” she explained.

Do not criminalize poverty

De Shutter, together with Balakrishnan Rajagopal, Special Rapporteur on the right to adequate housing, have issued another hard-hitting report highlighting the urgent need to decriminalise homelessness and poverty.

The study, based on more than 130 contributions from governments, human rights institutions and civil society organisations, reveals a worrying picture of criminalisation of homeless and poor people.

The report highlights that homeless men, women and children face penalties, fines and sanctions for basic activities such as sleeping, washing, cooking, eating, begging and working on the street. These practices not only do not solve the problem, but directly violate international human rights..

In the recent case Grants Pass vs. Johnson Before the U.S. Supreme Court, it was argued that penalizing homeless people for camping and sleeping in public spaces without providing adequate shelter not only violates the right to adequate housing, but constitutes cruel and inhuman punishment. Although the Supreme Court did not recognize this perspective, the dissenting justices’ opinion underscores the injustice of criminalizing a biological necessity like sleep.

The rapporteurs insist that the solution to the problem of homelessness lies in ensuring access to housing, not in criminalising poverty. Sanctions aggravate the situation, pushing people further into poverty and making it more difficult for them to access employment and housing. Resources allocated to the application of these laws should be redirected. Towards addressing the underlying causes of poverty and homelessness.

Visits to Ecuador and Bangladesh

De Schutter also briefed the Human Rights Council on his recent visits to Ecuador and Bangladesh.

During his visit to the Latin American country, between August and September 2023, De Schutter pointed out the deteriorating security situation following the presidential elections, where the government is facing increasing drug violence, aggravated by poverty which facilitates the recruitment of young people by criminal gangs.

De Schutter stressed that investing in education, health and social protection is essential to breaking the vicious cycle of poverty and insecurity.

Inditex and H&M must raise wages

As for Bangladesh, he noted the plight of Rohingya refugees in Bangladesh, who, after fleeing genocidal attacks in Myanmar in 2017, are living in worrying conditions in the camps of Cox’s Bazar.

The expert called on the international community to ensure decent living conditions for them until their repatriation is possible.

De Schutter also stressed that although poverty has decreased in Bangladesh, certain groups such as Dalits and Adivasis still face social discrimination.

In the garment sector, which accounts for 82% of Bangladesh’s exports and employs more than four million workers, De Schutter advocated for wage increases to meet human rights standardsurging major buyers such as Inditex and H&M to support this demand.

*Special rapporteurs are part of what is known as Special Procedures of the Human Rights Council. Special Procedures, the largest body of independent experts in the UN human rights system, is the general name for the Council’s independent fact-finding and monitoring mechanisms that address specific country situations or thematic issues in all parts of the world. Special Procedures experts work on a voluntary basis; they are not UN staff and do not receive a salary for their work. They are independent of any government or organization and serve in their individual capacity.

**Professor Olivier De Schutter is he United Nations Special Rapporteur on extreme poverty and human rights since May 2020. He was appointed by the United Nations Human Rights Council and is part of the Special Procedures of the Human Rights Councilgeneral name for the Council’s independent fact-finding and monitoring mechanisms that address specific country situations or thematic issues in all parts of the world.